Life insurance is designed to protect your family and any other people who may depend on you for financial support. We get it – it’s probably not something you think you need to consider when you’re in the prime of your 20’s or 30’s, but, funnily enough, it’s actually the perfect time to think about purchasing coverage! As a general rule, life insurance plans are the lowest cost for young and healthy individuals.
In addition to age, deciding whether to purchase a life insurance plan has a lot to do with where you are in life. For example, if you have a family (spouse, children, other family members) to support and your death would impact on their ability to pay unpaid debts, support themselves, or pay for future commitments, you want to protect their financial security by purchasing life insurance. On the flip side, if you’re single without children, you can probably skip on life insurance for now and revisit it when your circumstances change. As a simple rule, if someone depends on your income, you should have life insurance coverage to protect them.
Let’s cover some basic scenarios that will help you make the decision as to whether you should be thinking about life insurance coverage and at which age:
- You’re beginning a family or even just thinking about it: If you’re considering starting a family, you should be considering purchasing a life insurance plan! They kinda go hand-in-hand. As you’re younger, it will be most affordable to get in now, too.
- You have a family: If your family depends on you and your income – you should definitely have a life insurance plan. Not only does this just cover someone earning an income outside the home, but for homemakers and those raising the family, too. Replacing their function (childcare, domestic chores) will have an impact on your family’s financial position
- Single Adults: While a single adult may not see a need for life insurance as there are typically not people that rely on them financially like children and a spouse would, it’s still something that should be considered. The older you get, the more expensive life insurance gets. So if you purchase young, you won’t have to pay more due to your age down the track. Platforms like Everyday Life can also quote for plans that adjust as your needs change – so if you were to start a family, your plan would adjust accordingly!
- Homeowners: Life insurance plans can include mortgage debt, too, and avoid you having to purchase additional mortgage insurance. Life insurance makes sure your debts are paid off upon your death and ensures no one is left having to look after your debts for you.
As all life insurance plans are assessed on a case-by-case basis and no two people’s situations are exactly the same, your coverage should reflect this. We feel strongly about personalized coverage at Everyday Life – so we’ve created an advice tool that tailors your policy to your circumstances. Get started with your free, 5-minute quote now!